King Digital Entertainment (KING) Tops Q1 EPS by 8c, Offers Outlook

King Digital Entertainment (NYSE: KING) reported Q1 EPS of $0.61, $0.08 better than the analyst estimate of $0.53. Revenue for the quarter came in at $569.5 million versus the consensus estimate of $565.2 million.

Monetization

• Monthly Unique Payers (MUPs) in first quarter 2015 were 8.523 million, up 179,000, or 2%, from fourth quarter 2014, and down 3.336 million, or 28%, from first quarter 2014.
• The sequential increase in MUPs is primarily related to the growth of our MUUs over the quarter, some of whom have purchased virtual currency in our games, in addition to increased game play activity, both of which were supported by the holiday marketing campaign which extended into January.
• Monthly Gross Average Bookings per Paying User (MGABPPU) increased to $23.64 in first quarter 2015, up $0.22, or 1%, from fourth quarter 2014, and up $5.62, or 31%, from fourth quarter 2014. The relatively flat MGABPPU on a sequential basis reflects a consistent portion of payers who are paying in more than one game, who spend higher amounts than those who pay in only one game.

OutlookThe following forward-looking statement reflects King's expectations as of May 14, 2015:

Based on our game release schedule, the impact of foreign currency changes to date and recent trends, we expect gross bookings of $490 million to $520 million in second quarter 2015. Taking these factors into account as we look toward the remainder of the year, we expect the mid-year period to be seasonally softer, returning to growth trends in the latter part of the year.

For earnings history and earnings-related data on King Digital Entertainment (KING) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• SanDisk upgraded at JPMorgan after investor day; shares climb
• SVB & T Corporation (SVBT) Tops Q2 EPS by 275c